Which of the following describes a situation that could indicate potential insurance fraud?

Claims made immediately after obtaining a new policy can be a red flag for potential insurance fraud because they may suggest that the individual is attempting to exploit the insurance system. This pattern often raises suspicions, as it may indicate premeditated actions where the individual seeks to benefit financially from the policy shortly after its initiation. Insurance companies are particularly wary of such claims as they can be indicative of individuals who may have taken out a policy with the intention of making fraudulent claims rather than seeking necessary coverage.

In contrast, multiple claims over several years, consistent small claims, and claims made by established policyholders are not inherently indicative of fraud. Multiple claims might reflect a genuine pattern of incidents occurring over time, while consistent small claims may represent normal, minor occurrences that can happen in everyday life. Additionally, claims from established policyholders often demonstrate a history of legitimate coverage and may suggest trustworthiness and a lower risk of fraudulent activity. These aspects contribute to the perception that claims need to be evaluated in context, but an immediate claim right after obtaining a new policy stands out as a potential red flag.